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Insurance reform proposals floated

Among other things, a state panel wants standard discounts for home improvements.

By Tom Zucco
Published November 10, 2006

After seven meetings around the state over the past three months, Gov. Jeb Bush's Property and Casualty Insurance Reform Committee this week issued its first of three reports.

Among the major recommendations:

- Eliminate the state's windstorm boundaries and allow Citizens Property Insurance to write complete homeowner policies throughout the state.

- Make it easier for insurance companies to buy reinsurance through the Florida Hurricane Catastrophe Fund.

- Standardize the premium discounts insurance companies offer policyholders who strengthen their properties.

The report also recommends that modeling companies used by insurers recalibrate their models to take mitigation into account, an expansion of the state's mitigation program, and eliminating the process Citizens uses to seek rate increases through the Office of Insurance Regulation.

Instead, the OIR would set Citizens' rates on a quarterly basis, based on the highest approved rates in the voluntary market.

Citizens, the state-run insurer of last resort, also should merge with the state's Property Casualty Joint Underwriting Association, the report recommends, in part because the PCJUA has written only 108 commercial policies as of Oct. 26.

Another recommendation is that Citizens eliminate the distinction between non-homestead and homestead properties. Under current law, non-homestead properties will be charged more next year.

Created by the governor in June and chaired by Lt. Gov. Toni Jennings, the 15-member reform committee includes three state legislators as well as those representing the banking, development and insurance industries.

Bush has said he will call a special session of the Florida Legislature to address the insurance crisis, most likely the first week in December, if the committee comes up with workable solutions.

Details of the 117-page report will be presented Wednesday when the committee meets again in Tallahassee.

The committee's next report is due Dec. 15, and its final report is due Feb. 1.

Tom Zucco can be reached at zucco@sptimes.com or 727 893-8247.

[Last modified November 9, 2006, 23:48:21]